Should You Buy a Life Insurance Policy After Marriage?

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After those 4-5 days of auspicious celebrations for tying the knot, you are responsible for the well-being of your partner and so does your better-half. Well-being may be in terms of physical and mental health, financial stability, stability in relations and overall satisfaction in staying together. As the responsibilities increase, your need for the best insurance plan also increases.

However, life is full of uncertainties and surprises. Buying a life insurance plan post marriage provides a foundation in case of undesirable events. Let’s drill into the process of how life insurance helps you after marriage:

  1. Increase in expenses

You need to accept the fact that your monthly expenses would increase after marriage. You no longer live as a single person since you got to take care of your spouse. The expense would increase more if you both decide to have a child. The importance of life insurance is at its peak if the entire family depends on you. In case any unfortunate event happens, the dependent family would face financial challenges. Hence, all types of life insurance policies provide an edge by covering those monthly expenses in case of undesirable events.

  1. Impact of joint loan

Many couples take a joint loan for various reasons such as to buy a car or property. If any one of the spouses is no more, the better half has to face the outstanding debt load. The surviving spouse has to deal with increased debt obligations and he/she may sell the collateral asset to get rid of the debt. However, life insurance in such a case covers the probability of such an event and the surviving partner would then be relieved of such financial stress.

  1. Investment component in the policy

Today, life insurance policies plans are not limited to only risk exposure in the event of casualties. The concept is widened now to cover for investment perspective in the plan. Types of life insurance include endowment plans, money-back plans, guaranteed savings plans, etc., which provide a fixed return as per market rates. Such accumulation of reserves is helpful in times of need.

  1. Higher Coverage Amount

Life insurance policies, if taken at a healthy age, would help you provide a higher coverage amount along with reduced premium expense. Thus, it is always advised to take life insurance policies immediately after marriage. The difference saved in the premium expense is an additional asset.

  1. Future planning

As you progress with your marriage, future planning becomes an essential part of your savings. You may dream to save for a new home, a vehicle, education expenses, etc. As you move ahead, retirement planning may become the centre of planning. Life insurance provides a foundation for future planning. A life insurance policy of your child would help increase the financial security in case of any undesirable event. The varied types of life insurance policies allow adding optional riders. Such policies can be used during marriage, higher education in India or abroad. Further, a retirement policy linked with life insurance would help you to receive a regular stream of inflow. Thus, a life insurance policy would help you to plan better at different stages of life.

  1. Beneficiary

You should choose your spouse as a beneficiary for your policy. This would help your spouse to easily avail the benefits in case of an unexpected event. The financial security increases when there are no hustles in getting the claim proceeds.

  1. Disability Cover

Unfortunately, if any of the spouses suffer from a disability due to an accident or an unexpected mishap, the situation may become worse if the policy does not provide a disability cover. Disability cover provides financial aid to the survivor to cover up the lifestyle expenses. The best planning is the one that includes solutions for all ifs and buts of a situation. So, many life insurance policies provide such features.

  1. Premium is lower after marriage

The premium expense is low when a joint-life insurance policy is taken rather than two individual policies. Further, it becomes easier for the surviving spouse to manage the claim proceedings after an undesirable event. However, the premium (which can be calculated using a life insurance calculator) still depends on various factors such as your age, age of the spouse, stream of income, income level, health conditions, history of health records, number of optional riders and so on.